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Creating Value to meet customers needs
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Quality: Quality products by correct and secure fitting.
Flexibility: Products for changing requirements of different Sports.
Delivery: Nike uses Fed Ex or UPS to deliver packages.
Supply Chain Processes
Overview of SCM & Mfg.
Nike Product Development
Lean Manufacturing
Nike’s Manufacturing flow management:
Organizations like Nike, no longer produce goods but instead outsource all the production functions to partners located overseas and particularly in China.
Lean manufacturing is a business
system and continuous improvement philosophy that aims to deliver the
highest-quality product while eliminating waste, including lost time and material
Outsourcing:
Disadvantages
Outsourcing:
Advantages
Disadvantage of outsourcing to
the organizations is that the organizations normally experience longer lead times for delivery
Nike supply chain strategy
Competitors of Nike Inc.
Role of Information system
Relationship with partners
Nike has integrated all its information
with supply chain management as well as
customer relationship management been
integrated into a single shared platform.
Practices followed by Nike to maintain Strong relationship with supplier are
Market Share
Acquisition Timeline
Competitors
Outsourcing As the key procurement strategy
Demand management
Nike outsources majority of its manufacturing
function to overseas factories. The strategy to
outsource was implemented once Nike’s management team established that they could get Nike shoes
produced in Japan for lower costs than they were
paying for in the United States.
Nike manages demand for its products by use of futures program that requires retailers who stock Nike’s products to order 80% of their inventory six months in advance in order to be guaranteed delivery
Disadvantages of Nike Supply chain strategy
1998
History
1988
2008
2003
2007
2013
2008
2002
2004
1994
ERP
No control of the inventory since it has too many suppliers
Low wages and sweat shop conditions
To do Business long ago we use:
Calculators
Typing Machines
Which covers lot of space and increases workflow
Nike-ERP
Conclusion & Recommendation
Nike implements ERP Company:
This project ultimately proved to be a big disaster for the Nike’s operations.
Problem
Nike Chairman Phillip Knight is quoted as saying,
"This is what we get for our $400 million?“
There were huge inventory problems and overdue deliveries.
Affected the Nike reputation as an innovative user of technology.
Decrease in share prices.
Reasons of Failure
Nike needed the customization of the software to be done soon, so the reprogramming was done in a hurry. The system was able to run but with bugs, causing errors.
“Dear Customer, you have to call the warehouse”
Proverb by finance dept. employee
ERP Software
ERP attempts to integrates all departments and function across a company onto a single computer system that can serve all departments particular needs
Introduction